What's Happening?
AIG has reached a definitive agreement to acquire the renewal rights of Everest Group's retail commercial insurance business, which encompasses approximately $2 billion in gross premiums. This strategic acquisition will allow AIG to expand its general
insurance portfolio without requiring additional capital. The deal ensures that liabilities remain with Everest, while AIG gains the rights to renew commercial retail business across the U.S., U.K., Europe, and Asia Pacific. This move is part of Everest's strategy to focus on its reinsurance and specialty insurance businesses.
Why It's Important?
The acquisition is significant for AIG as it seeks to enhance its market position and drive growth in its general insurance segment. By acquiring these renewal rights, AIG can increase its premium income and customer base without assuming Everest's existing liabilities. This aligns with AIG's broader strategy to streamline operations and improve financial performance. For Everest, the deal allows the company to concentrate on its core reinsurance and specialty insurance operations, potentially leading to improved financial returns and market focus.
What's Next?
AIG plans to begin writing policies for Everest's existing clients in the U.S. and other regions starting January 2026, with European operations expected to commence in the first quarter of the same year. The transition will involve close collaboration between AIG and Everest to ensure a seamless experience for clients and brokers. As AIG integrates these new assets, it will continue to focus on enhancing its underwriting capabilities and operational efficiency, potentially setting the stage for further strategic expansions in the insurance industry.
